Quanta Power Generation, Inc, a Quanta Services Inc. (PWR - Analyst Report) company, was awarded an engineering, procurement and construction contract by Anchorage Municipal Light & Power for the George M. Sullivan Plant 2 Generation Replacement Project in Anchorage, Alaska. The thermal power plant will have a total capacity of 120 Megawatt. The financial details of the contract were not disclosed.
Quanta will begin the engineering and procurement activities soon and expects the construction of the plant to be completed by Sep 2016. The proposed project will be designed in a 2x1 combined-cycle configuration, utilizing GE LM6000 combustion turbine technology. The proposed plant is expected to significantly reduce natural gas use and emissions, besides improving the heating of the municipal water supply and providing additional generation capacity to meet Anchorage's power needs.
Quanta Power Generation is a full service engineering, procurement and construction services provider to the power generation industry for solar, geothermal, natural gas, biofuel and other generation projects. Quanta Power is a part of Quanta Services, Inc.
Quanta Services’ Electric Power segment is benefiting from projects aimed at upgrading and deploying electric power transmission infrastructure. These projects are geared to improve system reliability and delivery of renewable electricity from new generation sources to demand centers.
Favorable industry legislation is also generating incentives and a positive environment for utilities to invest in their electrical infrastructure, particularly transmission infrastructure. The company’s Electric Power segment continues to win large electric transmission projects and is expected to derive significant benefit from transmission build-out in the U.S. and Canada, leading to strong backlog in 2012 and beyond.
Quanta currently has a Zacks Rank #3 (Hold). However, other stocks in the Power sector which are worth considering at the moment are Pioneer Power Solutions, Inc. (PPSI), Crane Co. (CR - Snapshot Report) and Tyco International Ltd. (TYC - Analyst Report). Pioneer has a Zacks Rank #1 (Strong Buy) while Crane and Tyco carry a Zacks Rank #2 (Buy).